We’re Answering your Questions About Real Estate Agents! (Part One)
What is a real estate agent?
Real estate agents assist clients in buying and selling real estate property. They’re licensed professionals with extensive knowledge of current market and industry trends. They’re experts in negotiation and professionally trained to understand all paperwork and handle any issues that may arise during the sale. Simply stated, they take the stress out of buying or selling your home!
Are there different kinds of real estate agents?
Although all licensed REALTORS® can assist you with both buying and selling, there is a difference in the duties performed depending on if they are working for a buyer (Buyer’s Agent) or seller (Seller’s Agent). It’s highly recommended that you hire a real estate agent that is working exclusively for you and has your best interest in mind.
In some cases an agent may represent both the buyer and seller in a single transaction. In this event, all parties must sign a disclosure which acknowledges the agent is working for both parties.
What is the difference between a Buyer’s Agent and Seller’s Agent?
- Buyer’s Agents work exclusively for the buyer with their best interest in mind. They can assist with searching for desired properties, setting up and attending showings with the client, performing market research to ensure that list price is fair and writing up and negotiating offers on behalf of the client.
- Seller’s Agents work exclusively for the seller with their best interest in mind. They will do market research to fairly select the list price of the home, recommend improvements that may need to be made in order for the home to sell quickly or at a higher price, market the property to prospective buyers, hold open houses and review offers with the seller.
Why do I want/need a real estate agent to help me?
Purchasing real estate is a big decision and commitment. You definitely want to make sure that you’re getting the best deal possible and paperwork is filed and recorded properly to avoid potential legal issues or hassles later.
What are the fees associate with real estate agents and who pays them?
Most real estate agents are paid on a commission basis. Fees are calculated based on a percentage of the home sale and paid to the agents at the time of closing on the property. The seller pays the commission on the sale and that fee is typically split between the buying and selling agent.
A few real estate brokerages will offer the option of flat fee or “limited services” agreements where the seller can pay a one-time fee for the agent to facilitate specific duties such as reviewing transaction paperwork or listing the property for sale on the local MLS.